Name: Espera Clarisse Paola R.

Section: BSA 2-1

RESEARCH ANALYSIS:

1. What are the accounting assumptions?

- The reliability assumption, the consistency assumption, the time period
assumption, the going concern assumption, the economic entity assumption,
and the money measurement assumption are the six accounting
assumptions. These assumptions improve the financial statements'
dependability, veracity, and objectivity. The goal of these assumptions is to
allow users to assess the veracity of an organization's financial records.

2. Explain the following assumptions (a) going concern (b) accounting entity (c) time
period (d) monetory unit.
- The going concern is about the fundamental assumption that allows the
analyst to believe that the company is not in immediate danger and that it can
continue to operate indefinitely. The accounting entity is the assumption that
separates the company's financial records from the owner's personal financial
records. The time period specifies that an entity's accounting practices and
methods must be reported and maintained for a specific period. However,
because the monetary unit improves understanding of a business's financial
situation, every transaction must be recorded and expressed in monetary
terms.

3. What do you understand by Conceptual Framework for Financial Reporting?

- It describes the goals and concepts for general-purpose financial reporting. It
defines the goals and objectives of financial reporting, and the fundamentals
are the underlying concepts that aid in achieving those goals.
4. Explain financial reporting.
- Financial reporting is the process of documenting financial activities and
performance in order to track, analyze, and report the income of your
business. Financial reports are required to forecast a company's future
profitability. Its primary objectives are to provide information to investors, track
cash flow, and analyze assets, liabilities, and owner's equity. It also assists
management in making effective decisions for the company.